biodiesel blenders' tax credit Articles

The U.S. International Trade Commission on Dec. 5 made a final finding that biodiesel imports from Argentina and Indonesia harm U.S. producers. The decision, coupled with last month's final countervailing duties determination by the Department of Commerce, paves the way for final countervailing duties orders by the end of December. NATSO disagrees with the outcome, preferring free trade policies, and maintains that limiting fuel marketers' access to supply from overseas will raise retail fuel prices. The decision does, however, obviate the need for Congress to convert the biodiesel tax credit from a blender credit to a producer credit, as this change was designed to limit imports in the first place.

The New England Fuel Institute (NEFI) and the New York State Energy Coalition (NYSEC) marked the latest organizations to urge lawmakers to retroactively extend the biodiesel blenders’ tax credit and phase it out over five years. In a letter to the Senate Finance Committee, NEFI and NYSEC said that proposals to shift the biodiesel tax credit to a producers’ credit would have an immediate and adverse effect on biodiesel supplies in the Northeast, including supply disruptions and an increase in consumer prices for biodiesel blended heating oil in New England and New York.

The Society of Independent Gasoline Marketers of America on Nov. 14 told members of the Senate Finance Committee that although it supports the biodiesel blender’s tax credit, the association would prefer no credit rather than have it converted to a producer’s credit.

NATSO and a diverse group of biodiesel producers, fuel retailers and trucking interests representing every segment of the biodiesel supply chain sent a letter the Senate Finance Committee and House Ways and Means Committee on Oct. 31 in support of extending and phasing out the biodiesel blenders’ tax credit, and outlining their opposition to efforts to shift the credit to a producers’ credit as the tax-writing committees consider tax reform legislation.